The Board of Directors of this company held a special meeting in September 2009 to discuss and analyze the costs of water in the region and water rates of our company.

Since January 2007, government agencies of the County of Los Angeles, such as the Central Basin Municipal Water District and the Water Replenishment District, from which we purchase water or the rights to pump underground water, have increased their fees by more than 30%. For this reason, we are obligated to increase the water rates from $2.05 to $2.25 per 748 gallons, which is equivalent to one unit of water. In addition, the service fee for water meters with a diameter of 5/8”, ¾” and 1”will increase $5.00 dollars per billing period (2 months).

Further increasing the costs of delivering water to you is the installation of water treatment plant to remove minerals, including manganese and iron, etc., which is now a reality. The treatment plant will be located on 4421 E. 52nd Street and will be completed around February 2010, at a cost of approximately $1.1 million.

While every effort has been made to receive Federal, State, and Local government assistance in order to repair our aging infrastructure, parts of which are more than 90 years old, no government agency has provided any financial resource and we must pay for the repairs ourselves.

We believe this is the most sensible and effective mode of communication to keep you informed. Please call the office if you have any questions, need clarification, or have any suggestions. The telephone number is (323) 581-5816.

Thank You.Maywood Mutual Water Co. 2

Central Basin Municipal Water DistrictResponse

Maywood Mutual Water Co. No. 2

In response to the letter dated October 15, 2009 by Maywood Mutual Water Co. No. 2. In which the water company attributed proposed rate increase to Central Basin Municipal Water District, Maywood Mutual Co. 2 has not purchased water from Central Basin since May 2007.